,India

India mulls phased roll out of central bank digital currencies: report

Its launch will require legal changes to the nation’s foreign exchange and IT rules.

The Reserve Bank of India (RBI) is considering a “phased introduction” of a central bank digital currency as it will require legal changes to be made in the nation’s foreign-exchange rules and information technology laws, says Deputy Governor T. Rabi Sankar in a speech outlining the RBI’s plans on 22 July.

Sankar said policymakers were considering running pilot programs for the proposed CBDC. Its introduction will reportedly protect people from the volatility of private virtual currencies, he added.

Also Read: What's up with central banks' craze around digital currencies?

Earlier this year, in its annual report on currency and finance, the RBI said that CBDCs could be designed to promote non-anonymity of monetary transactions and financial inclusion by direct transfers.

Interest-bearing digital fiat can also increase the economy’s response to changes in the policy rate, the report added.

Here’s more from Bloomberg.

Photo courtesy of Anurag Viray

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Google Pay users can get up to a 20% cashback when they pay through SGQR.
It is exiting the retail banking business to refocus on corporate transactions.
NPL ratio is expected to rise to its highest since the 2009 financial crisis.
The latest licensed banks in Thailand have loan market share below 0.5%. 
The capital injection was approved by the State Bank of Vietnam.
RetireSavvy allows Singaporeans to adjust their retirement plans.
Its net promoter score rose 35% in 2021 from end-2020.
Chuchkina has 15 years of experience in the fintech industry.
Green projects have the potential to create over 1,350 jobs in the country.
Rapheal Mun will relocate from Singapore to London for her new role.
The new COVID surge that began in April may hinder GDP recovery.
Banking leaders admit that they are at risk of ceasing to exist in 5-10 years.